The world’s biggest cryptocurrency Bitcoin BTC is down 30% in the past seven days. With BTC diving below its vital support levels of $23,500 and $22,500, it now sits at $20,940, with hourly surges and drops; the coin has failed to regain support or break the $20,100 resistant level.
As observed in the chart above, BTC is hovering in the same price range ever since its $2000 surge on Thursday that saw it hit $23,000. A trend like this occurs in financial markets when buying and selling pressures are fighting for dominance. This eventually leads to a breakout or a breakdown.
BTC’s bouncing off the early $20,000 zone affirms the money flowing into the market while its resistance to break out of the $22,000 level shows bears might still be in control. In a situation like this, BTC is expected to move sideways, trading in the range of $20,500-$21,500 for the time being.
On-chain data from CryptoQuant indicate that BTC net deposits on exchanges are low compared to the sevem-day average. Lower deposits can be interpreted as lower selling pressure. In the past 24 hours, selling pressure has decreased by 115%.
With investors' capitulation phase of unrealized losses, the decreasing motive to realize losses has also led to a decrease in sell pressure.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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